Whats in the box?

*This case study has been designed for iCreate 2017 and is for illustrative purposes only

ABC Telecom is the leading telecom service provider in the country. ABC has always been the
leading innovator or the early adopter when it comes to deployment of any new technology
and putting the same into commercial use for its end customers. So, VoLTE (Voice over LTE)
is no different. CEO Vasudev of the company has assigned the task to the CMO Balakrishna,
CTO Kris and CPO Venkat to understand VoLTEs role in serving the customer needs, conduct
feasibility study in existing network, prepare solution architecture & network deployment plan
and develop the sourcing model with prime focus on getting the best VoLTE solution available
in the market to be deployed in the least possible time and at optimum cost.

About ABC Telecom Ltd.

ABC Telecom Limited is an Indian global telecommunications services company which

operates in 18 countries across South Asia and Africa. ABC provides 2G, 3G and 4G
LTE mobile services, fixed line broadband and voice services depending upon the country of
operation. ABC is testing VoLTE technology across five cities in India and should roll out the
technology towards the end of 2017. It is the largest mobile network operator in India and
the third largest in the world with 400 million subscribers. The India subscriber base is 300 Mn
and is growing. It is also one of the most valuable brands in the country.
Over the years, ABC has set industry standards in forming strategic partnerships with the
leading companies of the world to optimize synergies and come up with cost effective
solutions to create value for its customers. It is also known for its innovative contracting
models and is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales, supply chain and finance. Currently, ABCs telecom
equipment is largely provided and maintained by Andromeda Wireless Tele, Starburst Ltd.,
Malin Networks and Pinwheel Systems whereas IT support is provided by Ursa Business
Majors. The transmission towers are maintained by subsidiaries and joint venture companies
of ABC including ABC Infratel and Triangulum Towers in India.

About VoLTE

VoLTE stands for Voice over Long Term Evolution (LTE) and it is a feature that enables voice
calls over a 4G LTE network with compatible devices, rather than the 2G or 3G connections
which are usually used. We tend to think of 4G as mostly being about downloading, streaming
and web browsing, and indeed thats primarily what its been used for so far, but it can also be
used to improve calls. Being on a VoLTE network means that both your data and your calls will
use the 4G network. Previously, if you were using a 4G device and you made a phone call, your
phones radio would switch over to the 3G/2G network to actually handle the call. The
infrastructure behind the call only supported voice over 3G/2G networks and frequencies, so
this is a necessary step to ensure your call gets through on a 4G network.
The existing Core System installed at ABC Telecom that supports CSFB is having a useful life
till 2022 after which the operator would have to definitely modernize the system to the latest
technology and options available at that time. Generally, equipment bought in telecom
industry have a shelf life (End of Support or EOS) of 7 to 10 years from the date of supply.
VoLTE Sourcing Model: White Box or Black Box?

The CPO of the organization has assigned the task to the Global Network Sourcing Category
Lead (hereafter referred to as Category Lead) to come up with a detailed sourcing strategy
for VoLTE. One of the prime task is to evaluate whether to go for a white box or black box
sourcing model as far as the long term procurement strategy is concerned. When performance
specifications are used as the deliverables, the process is commonly referred to as black box
sourcing and the supplier has maximum latitude to be innovative in achieving the contracted
performance levels/ specifications. The buying organization focuses on the business centric
desired outputs and they are captured as the performance specifications. This leads to an
outcome based contract. Design specifications give the buying organization maximum control
over the process through which an outcome is achieved. This approach typically is referred to
as white box sourcing and leads to a behavior based contract in which what is controlled is not
the outcome but the behavior that is required to manifest the desired outcome. In this case,
the buying organization assumes the task of system design of the solution and have the option
to optimize the Bill of Quantity of equipment deployed but owns the risk of the success or
failure of the end product.
Here, the Category Lead has to choose between the below options:
A. Black Box: Agree to a per subscriber based commercial model where the payment
to the supplier is linked to the number of subscribers that are served at any given
point of time.
B. White Box: Identify each and every individual price element categorized into
Hardware, Software and Services and make payment based on the actual quantities
deployed and services delivered by the supplier.
Both the sourcing models have their own pros and cons, however, the Category Lead has to
choose the model that gives the maximum benefit to the organization and is scalable from a
long term perspective assuming that VoLTE utilization as a service and overall deployment
base shall increase significantly in the future. Secondly, the model should be easily replicable
in other geographies across the world wherever ABC telecom is having its presence. Global
presence of the supplier is also one of the key parameters for evaluation.
Another task, irrespective of the sourcing model being chosen, is to evaluate the Should-Cost
vs the Price that the organization can afford to pay in order to make the overall business case
attractive for ABC Telecom. Cost in this case would mean evaluating each and every individual
cost elements that are involved in VoLTE deployment in terms of Hardware, Software &
Services. Price in this case would be a derivative of the overall benefits that VoLTE services
can provide in terms of incremental revenue, market competitiveness, customer delight etc.
minus the promotion & marketing costs, overheads, profit margins, cost of capital etc. and
incremental network operating costs. The prime objective of the sourcing strategy would be
to get the best solution at the lowest Cost so as to increase the overall margins of the
organization. Under no circumstances, the Cost can be higher than the Price derived above.
The spend of VoLTE would primarily include the below cost elements:
A. Capital Expenditure: The expenditure that the organization would incur in deploying
VoLTE as a function of the capacity it wants to serve which in turn would largely be
linked to the customers and the territories it would like to serve over a period of time.
Understanding key cost elements in terms of Hardware, Software and their associated
Services shall play a key role in evaluating the cost towards capital investment.
B. Operational Expenditure: This refers to the routine expenditures that the organization
would incur once the VoLTE deployment project is complete and the services are
being put into commercial use. This may include cost components like operations &
maintenance of the deployed infrastructure, routine software/ hardware updates,
repairs and returns of the installed system, incremental power and space required etc.
Global VoLTE subscriptions are projected to reach 4.6 billion by the end of 2022. As per recent
surveys, it is expected that by 2020, 40% of the voice calls in the country will be on VoLTE.
This in line with the VoLTE subscriber growth projections, expected to reach 370 Mn by 2022,
would play a role in determining the capacity that should be deployed for VoLTE. Also, a
headroom has to be kept in the deployed capacity for any technology to cater to any
unprecedented or occasional growth. Based on the recent offerings from various telcos where
bundles packages have been offered with free voice. This is aiding in increasing VoLTE calls.
With VoLTE handsets and data becoming cheaper, consumption will further go up in the
coming period.
The useful life of the Equipment deployed play a key role in commercial comparison of solution
proposed by different suppliers. Generally, equipment bought in telecom industry have a shelf
life (End of Support or EOS) of 7 to 10 years from the date of supply.
Supply Market Overview

The sourcing strategy would also depend upon the Supply market for VoLTE. The market is
dominated by four major network solution providers who can provide end-to-end VoLTE
solutions, namely, Andromeda Wireless Tele, Starburst Ltd., Malin Networks and Pinwheel
Systems only. The market is complex and entry barriers are high as the initial investments and
R&D costs are significant. If one has to classify VoLTE in terms of supply risk and business
impact it may have, it would be right to consider it as a Strategic item where an organization
would like to have long term relationship with the solution provider once initial selection, award
and contracting process is through. The existing network equipment & technology suppliers,
primarily Radio Access Network (RAN) suppliers who have VoLTE solutions are preferred as
the solution is used over 4G network only. Once a particular suppliers solution is deployed, it
is very difficult to switch to another supplier as the deployment is complex and involves
integration with all the existing live network elements. Also, the solution architecture varies
from supplier to supplier and is also a time consuming process. The solution selected should
be 3GPP and ITUT standards complied and should allow interoperability and seamless
integration with all the existing network elements. The possibility to switch from one supplier
to another once the solution is deployed.
The solution provided by various suppliers listed above can be categorized into hardware,
software and services. Hardware proposed in the solution is either proprietary OEM hardware
or third party varying from supplier to supplier. For e.g. Andromeda Wireless has proposed
their own in-house manufactured hardware whereas Starburst Ltd. has offered third party
COTS hardware as Starburst has its tie-up with a leading COTS hardware supplier Eridanus
Hardware and if the Starburst solution is taken, hardware has to be bought from Eridanus
Hardware only. Eridanus is also an existing supplier for ABC Telecom. Malin Networks has
option of supplying their own proprietary hardware or COTS hardware at the discretion of ABC
Telecom. Pinwheel Systems have in-house expertise in VoLTE software primarily and all the
other components in their solution are third party. Pinwheel systems have given the option of
buying any of the COTS components from the available options in the market as long as the
technical specifications are in line with recommendations given by Pinwheel to get the desired
performance levels. Though the organization would prefer an end-to-end solution through a
single supplier to ensure overall responsibility for complete solution delivery and maintenance
remains with a single supplier, a significant portion of the overall solution, primarily Hardware,
can be served through standard third party Commercial off-the-shelf (COTS) hardware
depending upon the supplier selected. The leading third party hardware suppliers in the
industry are Eridanus Hardware, Acrux Components, Ursa Business Majors (UBM) and Lyra
Enterprise. All these four are existing suppliers of IT hardware to ABC Telecom though
significant share of existing deployed base including legacy infrastructure belongs to Eridanus
and Ursa Majors. Lyra Enterprises spend has grown exponentially with ABC Telecom over last
2 years and last year they were amongst the top 3 IT hardware suppliers in terms of overall
spend for the category. Acrux Components business with ABC isnt significant but they are a
prominent global player and can offer aggressive pricing compared to competitors to gain
business share.

The Competition

4G Telecom is a recent entrant in the countrys telecom industry and has recently launched
its 4G services across 22 circles in India. They are the countrys only VoLTE only service
operator in the country which lacks legacy network support of 2G and 3G. They have been
trying to gain market share by offering bundle packages containing data packs and free
unlimited voice. They are backed by their cash rich parent firm Dependence Ventures Ltd. The
implications of the services and product offerings by 4GTelecom are multifold as far as
existing telcos and subscribers are concerned. For telcos, it will initiate a price war to retain or
gain their market share which would in turn hit their margins and top line in the short run. The
smaller players might get merged or acquired by the larger players which would lead to
consolidation in the Indian telecom industry. It would also lead to faster development of
cheaper and affordable VoLTE enabled handsets which would mean that other telcos can also
be incentivized to provide VoLTE along with existing voice over 2G or 3G. This would also allow
other telcos to better utilize their available spectrums and improve efficiency across 2G, 3G or
4G spectrum depending upon the traffic and subscriber profile.
For subscribers, they might not be able to make voice calls to other networks seamlessly as
the other operators support traditional voice technology over 2G or 3G and their VoLTE
services are yet to be deployed over a large scale. However, free unlimited voice and huge
data packs may lead to a behavioral shift as far as the consumption patterns of subscribers
are concerned, which may lead to higher ARPU for the industry in the long term once 4G
Telecom starts charging a reasonable price for its services.
Vayuphone is the number two player in the mobile industry after ABC telecom. Recently,
Vayuphone and Clue Cellular (number three player in the industry) have announced merger
to form a telecom behemoth that will be number one by subscriber base. It will be the largest
merger in the countrys telecom history and would take time to stabilize. Though the merged
entity would like to remain market leader post-merger, there will be a sizeable churn and also
in few circles, the entity would have to give up subscribers where they would be crossing the
caps laid by the regulatory authorities in terms of subscriber market share. This would mean
an opportunity for the other telcos to gain the market share of the subscribers that will be
moving out of the merged entity. VoLTE strategy of either of Vayuphone or Clue is unclear at
present though they have acquired 4G spectrum in many circles across the country.
Another critical aspect is to choose the right contracting methodology along with the selection
of right sourcing strategy, right partner selection and right price. The right contracting
methodology is essential to ensure that organization risks and costs are controlled during the
contract duration and thereafter as well. As per the current plan, ABC Telecom is looking to
award initial contract to selected partner for three (3) years. ABC Telecom is having 2G, 3G
and 4G spectrum in all the 22 circles of the country and would like to cater to all the potential
VoLTE subscriber base in future. Whether to deploy VoLTE in incremental steps depending
upon the traffic growth or in one go on PAN India basis would largely depend upon the
potential revenue and spend that will be incurred towards deployment. The various options
available for contracting methodology that may be used for this category include:
Fixed Price Contract: As the name suggests, once the prices are accepted by the buyer,
there are firm during the contract term. In case of an inflationary environment, supplier
would assume the risk. However, usually supplier takes into consideration all the cost
parameters for the contract duration.
Fixed Price with Downward Revision Clause: In this case, the price may be adjusted
downward because of changes in cost. If the price of involved supply or services move
upward, supplier assumes the risk however, buyer is protected against any losses when
prices move down.
Fixed Price with periodic price erosion: In this case, intervals are defined during the
contract term when prices are reduced by agreed %age or absolute levels. This is
 preferred for latest technology sourcing where the supplying organization achieves
efficiency during the life cycle of the solution being offered as the costs are high during
the early stages when it is launched and comes down gradually once demand picks up
or advancements are being done.
Fixed Price with Redetermination: This is useful when there are many uncertain
variables involved to contend with, hence, buyer and supplier may choose to revisit the
price for the purpose of re-determining it at a later date. Though the buyer and supplier
are protected against future uncertainties, both will have to engage in negotiation
again as and when either party wishes to. This is preferred by a buyer when the
estimation of right price is difficult at the initial stages and also buying power is higher
than the supplying power for the given period.

Questions
1. What should be the right sourcing strategy for VoLTE procurement that ABC Telecom
should adopt- White Box or Black Box? Why?
2. What are the key factors/ parameters to be considered for evaluation & selection of
solution providers for VoLTE? Take examples of leading solution providers in the
industry today to justify your answer.
3. What should be the right price/ cost for VoLTE that ABC Telecom should pay to the
selected solution provider over a period of three years? The answer has to be based
upon the sourcing strategy chosen.
4. What should be the preferred Contracting Model to be chosen in this case based upon
the information shared in the case? Assume an initial Contract of three (3) years.
References

IBEF: https://www.ibef.org/industry/telecommunications.aspx
Radio-Electronics.com: http://www.radio-electronics.com/info/cellulartelecomms/lte-
long-term-evolution/voice-over-lte-volte.php
Telecom ABC: http://www.telecomabc.com/i/ims.html
Techtarget.com: http://searchtelecom.techtarget.com/definition/IP-Multimedia-
Subsystem-IMS
Finder.com: https://www.finder.com.au/what-is-volte
Techopedia.com https://www.techopedia.com/definition/29262/voice-over-long-term-
evolution-volte
TRAI Reports: http://www.trai.gov.in/release-publication/reports/performance-indicators-
reports
http://businessworld.in/article/VoLTE-Subscriber-Base-In-India-To-Reach-370-Million-By-
2022-Ericsson-Mobility-Report/14-06-2017-120172/
http://www.telecompetitor.com/report-volte-subscribers-to-total-310-million-come-year-
end/
GSMA: https://www.gsma.com/futurenetworks/resources/all-ip-statistics/
GSMA: https://www.gsma.com/futurenetworks/technology/volte/
Annexure VoLTE Additional Information
Utilizing IMS technology, VoLTE is a digital packet voice service that is delivered over IP via an
LTE access network. Voice calls over LTE are recognized as the industry-agreed progression
of voice services across mobile networks, deploying LTE radio access technology. The current
options available for carrying voice over LTE system are as mentioned below:
Circuit Switched Fall Back, CSFB: The circuit switched fallback, CSFB option for
providing voice over LTE has been standardized under 3GPP specification 23.272.
Essentially LTE CSFB uses a variety of processes and network elements to enable the
circuit to fall back to the 2G or 3G connection (GSM, UMTS, CDMA2000 1x) before a
circuit switched call is initiated.
The specification also allows for SMS to be carried as this is essential for very many
set-up procedures for cellular telecommunications. To achieve this the handset uses
an interface known as SGs which allows messages to be sent over an LTE channel.
Voice over LTE, VoLTE: VoLTE primarily works on IP-based networks and supports
packet switching. The data received from a circuit-switched cellular network such as
the Global System for Mobile Communications (GSM) or a Code Division Multiple
Access (CDMA) network will be converted into network packets before being
broadcast. VoLTE uses IP multimedia subsystem (IMS) based networks to offer these
services. It will not work on networks that are not compatible with or that have not
integrated IMS within their core architecture. The services that can be provisioned
using VoLTE include video calling, voice calling, and multimedia streaming and sharing
services.
Benefits of VoLTE
The implementation of VoLTE offers many benefits, both in terms of cost and operation.
VoLTE:
Provides a more efficient use of spectrum than traditional voice;
Meets the rising demand for richer, more reliable services;
Eliminates the need to have voice on one network and data on another;
Unlocks new revenue potential, utilizing IMS as the common service platform;
Can be deployed in parallel with video calls over LTE and RCS multimedia services,
including video share, multimedia messaging, chat and file transfer;
Ensures that video services are fully interoperable across the operator community, just
as voice services are, as demand for video calls grows;
Increases handset battery life by 40 per cent (compared with VoIP);
Delivers an unusually clear calling experience; and
Provides rapid call establishment time.
As per latest statistics released by GSMA, 113 operators across 58 countries have launched
VolTE and there are 1114 VoLTE compatible devices available in the market today. For the
carriers, VoLTE enables more efficient use of their networks because they dont have to do as
much switching between network frequencies to manage a user's call expectations. Not
having to switch networks to make VoLTE calls should enable calls to route slightly faster
through the network than they do with standard 3G voice calls. You also don't have to rapidly
swap between reception antennas, which may have a positive effect on your overall battery
life, although this is likely to be slight. The largest observable effect you will experience with
the use of VoLTE is that any background data tasks that need to happen on your phone will
still tick along at a more rapid rate while youre on a call. This is because you don't have to
switch away from the faster 4G network,
On a non-VoLTE call, youll dip to 3G for voice as well as data, which means your phones
Internet connection will slow down for the duration of the call. If youre multi-tasking during a
call, for example, checking details online while using the phone in speakerphone mode, this
could be noticeable, but if youre holding your phone up to your ear and only making or taking
a call, you may never notice.
As far as the drawbacks of VoLTE are concerned, right now, in order for a call to be carried as
VoLTE, you need both handsets to be VoLTE enabled and both should be operating within
VoLTE-enabled areas of the network youre both on i.e. VoLTE functionality can be made
available wherever there is a 4G network. If one side is on a non-VoLTE handset or network,
youll simply drop down to 3G for the call anyway. You may notice a slight speed difference in
call resolution if that happens because VoLTE can be faster in this aspect, but as there are
other factors that can affect call resolution, a slower resolving call may not relate to VoLTE
availability anyway. Depending on how the networks set it up there also may or may not be
network interoperability at first, so its possible that initially you may only be able to use VoLTE
to call people on the same network as you. Also, not every 4G handset is VoLTE enabled.
Handset ecosystem and availability in the market at affordable rates shall play a key role in
adoption of VoLTE by subscribers. As a pricing strategy adopted by operators, VoLTE is usually
charged in the same way as all other voice calls and doesnt use your mobile data allowance.
Annexure- Telecom Industry in India
(Source: https://www.ibef.org/industry/telecommunications.aspx)
India is currently the worlds second-largest telecommunications market and has registered
strong growth in the past decade and half. International Data Corporation (IDC) predicts India
to overtake US as the second-largest smartphone market globally by 2017 and to maintain
high growth rate over the next few years as people switch to smartphones and gradually
upgrade to 4G.
Market Size
Driven by strong adoption of data consumption on handheld devices, the total mobile services
market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound
Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research
firm IDC.
According to a report by leading research firm Market Research Store, the Indian
telecommunication services market will likely grow by 10.3 per cent year-on-year to reach US$
103.9 billion by 2020.
According to the Mobility Report published by a leading telecom solution supplier, smartphone
subscriptions in India is expected to increase four-fold to 810 million users by 2021, while the
total smartphone traffic is expected to grow seventeen-fold to 4.2 Exabytes (EB) per month by
2021.
According to a study by GSMA, smartphones are expected to account for two out of every
three mobile connections globally by 2020 making India the fourth largest smartphone
market. India is expected to lead in the growth of smartphone adoption globally with an
estimated net addition of 350 million by year 2020. Total number of smartphone shipments in
India stood at 25.8 million units in the quarter ending December 2016, and smartphone
shipments during 2016 stood at 109.1 million units, up by 5.2 per cent year-on-year.
Broadband services user-base in India is expected to grow to 250 million connections by 2017.
Telecom subscriber base expands substantially
India is currently the second-largest telecommunication market and has the third
highest number of internet users in the world
Indias telephone subscriber base expanded at a CAGR of 19.96 per cent, reaching
1058.86 million during FY0716
In March 2016, total telephone subscription stood at 1,058.86 million, while teledensity
was at 83.36 percent
Wireless segment dominates the market
In March 2016, Indias telephone subscriber base reached 1,058.86 million
In March 2016, the wireless segment (97.62 per cent of total telephone subscriptions)
dominated the market, with the wireline segment accounting for an overall share of 2.4
per cent
Urban regions accounted for 57.6 per cent share in the overall telecom subscriptions
in the country, while rural areas accounted for the remaining share
Annexure- Performance Indicators of Telecom Industry
The Indian Telecom Services Performance Indicator Report January - March, 2017
Source: http://www.trai.gov.in/release-publication/reports/performance-indicators-reports

Telecom Subscribers -(Wireless + Wireline)

1,194.58
Total Subscribers Million
% change over the previous quarter 3.72%
692.97
Urban Subscribers Million
501.61
Rural Subscribers Million
Market share of Private Operators 89.81%
Market share of PSU Operators 10.19%
Teledensity 92.98
Urban Teledensity 171.8
Rural Teledensity 56.91
Wireless Subscribers
1,170.18
Total Wireless Subscribers Million
% change over the previous quarter 3.80%
672.42
Urban Subscribers Million
497.76
Rural Subscribers Million
1,157.59
GSM Subscribers Million
CDMA Subscribers 12.59 Million
Market share of Private Operators 91.06%
Market share of PSU Operators 8.94%
Teledensity 91.08
Urban Teledensity 166.71
Rural Teledensity 56.47
Wireline Subscribers
Total Wireline Subscribers 24.40 Million
% change over the previous quarter 0.02%
Urban Subscribers 20.56 Million
Rural Subscribers 3.85 Million
Market share of Private Operators 29.71%
Market share of PSU Operators 70.29%
Teledensity 1.9
Urban Teledensity 5.1
Rural Teledensity 0.44
No. of Village Public Telephones (VPT) 2,29,685
No. of Public Call Office (PCO) 4,52,036
Telecom Financial Data
Gross Revenue (GR) during the quarter ` 63,315 Crore
% change in GR over the previous quarter 4.84%
Adjusted Gross Revenue (AGR) during the quarter ` 40,831 Crore
% change in AGR over the previous quarter 11.05%
Share of Public sector undertakings in Access AGR 12.56%
Monthly Average Revenue Per User (ARPU) for Access Services ` 89.34
Internet/Broadband Subscribers
422.19
Total Internet Subscribers Million
% change over previous quarter 7.84%
145.68
Narrowband subscribers Million
276.52
Broadband subscribers Million
Wired Internet Subscribers 21.58 Million
400.62
Wireless Internet Subscribers Million
285.68
Urban Internet Subscribers Million
136.52
Rural Internet Subscribers Million
Total Internet Subscribers per 100 population 32.86
Urban Internet Subscribers per 100 population 70.83
Rural Internet Subscribers per 100 population 15.49
Broadcasting & Cable Services
Number of private satellite TV channels permitted by the Ministry of
I&B for uplinking only/downlinking /uplinking 888
Number of Pay TV Channels 295
Number of private FM Radio Stations (excluding All India Radio) 293
Number of Pay Subscribers Active with Private DTH Operators 63.61 Million
Number of Community Radio Stations licensed (GOPA signed) 268
Number of Operational Community Radio Stations 206
Number of pay DTH Operators 6
Revenue & Usage Parameters
Monthly ARPU GSM Full Mobility Service ` 83
 Monthly ARPU CDMA Full Mobility Service ` 131
Minutes of Usage (MOU) per subscriber per month - GSM Full Mobility
Service 405 Minutes
Minutes of Usage (MOU) per subscriber per month - CDMA Full
Mobility Service 250 Minutes
Total Outgoing Minutes of Usage for Internet Telephony 258 Million

Data Usage of Mobile Users

Data Usage per subscriber per month GSM (2G+3G+4G) 1,006 MB
Data Usage per subscriber per month - CDMA 473 MB
Data Usage per subscriber per month Total(GSM+CDMA) 1,000 MB
Average outgo per GB data for GSM including LTE ` 6.36
Average outgo per GB data for CDMA ` 40.34
*(Data As on Q.E. 31st March, 2017, Source: TRAI)
Annexure A- Key Definitions

Commercial off-the-shelf or commercially available off-the-shelf (COTS) is a term

used to describe the purchase of packaged solutions which are then adapted to satisfy
the needs of the purchasing organization, rather than the commissioning of custom
made, or bespoke, solutions.
Territory or Territories: Territory shall refer to the telecom circle where the ABC
Telecom as per the telecom licensing policy of India holds the license to operate. For
this case, assume ABC Telecom is having license to operate in all the 22 telecom circles
of the country.
IMS: The IP Multimedia Subsystem (IMS) is a concept for an integrated network
of telecommunications carriers that would facilitate the use of IP (Internet Protocol)
for packet communications in all known forms over wireless or landline. IMS was
designed to fill the gap between the existing traditional telecommunications
technology and Internet technology. This will allow operators to offer end-to-end IP
services. This increases the potential for new innovative services and service
integration with other networks such as the Internet.